2007-3-20 2006-10-31 You can see from the first chart of the NASDAQ Composite that we have been in two different trend channels since the decline starting in May. The first channel is shown with the color orange and was much more aggressive than the current channel, shown in blue. This suggests that downside momentum is slowing. Even though it is not shown on our charts tonight, the RSI indicator is showing powerful divergences on all of the indices we follow, suggesting that momentum has slowed to the point of a reversal. Yesterday was also an outside day for the NASDAQ and even more importantly, the open and close matched on the upper end of the day with a very long tail that created a low for this rally. This is also very bullish. We have indicated a horizontal resistance line on the chart, which if passed should suggest that the correction is indeed over. 132942 text/html http://www.nasdaqwizard.com/midweek071906.html 1.0 EN index,follow You can see from the first chart of the NASDAQ Composite that we have been in two different trend channels since the decline starting in May. The first channel is shown with the color orange and was much more aggressive than the current channel, shown in blue. This suggests that downside momentum is slowing. Even though it is not shown on our charts tonight, the RSI indicator is showing powerful divergences on all of the indices we follow, suggesting that momentum has slowed to the point of a reversal. Yesterday was also an outside day for the NASDAQ and even more importantly, the open and close matched on the upper end of the day with a very long tail that created a low for this rally. This is also very bullish. We have indicated a horizontal resistance line on the chart, which if passed should suggest that the correction is indeed over. text